Phil Cannella Breaks Down Fixed Annuities

Phil Cannella provides an excellent explanation of the difference between the major categories of annuities and he does so in a way that makes it very easy for any consumer to understand. Any true expert in a field should be able to explain a technical subject in a non-technical manner and this is exactly what Phil Cannella does.

A Fixed Annuity, as Phil Cannella explains, is a specific type of annuity. Fixed annuities are essentially CD-like investments issued by insurance companies. Like CDs, they pay guaranteed rates of interest, in many cases higher than bank CDs. One of the advantages of these financial vehicles is that they pay guaranteed rates of interest, which makes them appealing to investors who have concerns about the market’s ups and downs. Another benefit is that interest gained escapes taxation until you pull it out.

Fixed annuities do have disadvantages too explains Phil Cannella. If for example you decide to opt for fixed lifetime payments, those payments will not rise to keep pace with inflation. As a result, the value of the money you receive will decline over time as inflation erodes the purchasing power of each dollar. So for example, if you retire young and plan to keep collecting annuity payments for a longer period of time, the purchasing power of your money could be a big concern. In an indexed annuity you have safety features so that you never lose a penny of principal even during down markets. However, when the markets go up you enjoy the increase.

Phil Cannella urges anyone who is looking at protecting some of their assets to find out about different kinds of annuities and invites them to look at his proprietary Crash Proof Retirement System.